Are you paying more with the Michigan Business Tax?
MRA needs “real-world” information from members in our efforts to reduce the unfairness of the new Michigan Business Tax. Please take our quick, online survey to provide valuable data.
Senate passes MBT relief for some businesses
The Senate again recognized that mistakes were made when transitioning from the Single Business Tax to the Michigan Business Tax, by passing additional changes to the new tax. SB 1198 would provide entrepreneurial and small business tax credits to help relieve the pain that medium-sized businesses are feeling under the new MBT. Democrats in that chamber, however, claimed the bill would blow a $250-million hole in the budget.
In its essence, the bill would raise from $180,000 to $250,000 the income level of business owners whose businesses would be eligible for the tax credits. The bill’s sponsor, Sen. Nancy Cassis (R-Novi), showed how one business in her district went from $25,000 in tax liability under the SBT to $142,000 under the MBT. MRA members have also been voicing their dismay with the MBT, and the Association continues to collect data (please complete the survey linked to the item above) from members in an effort to make changes in the MBT.
SB 1198 now goes to the House, where it faces a difficult future because the Democratic majority has stressed that all tax bills must be revenue neutral.
Supermajority ballot issue being discussed
Numerous parties have discussed the need for changes to be made in how tax laws are decided. With the recent debacle concerning the change from the SBT to the MBT involving a services tax that was here one day and gone the next, and the massive increases some businesses are now faced with, a solution is needed.
Requiring a supermajority, or two-thirds, vote of the legislature to raise or implement any new taxes is being considered as a ballot question for the November election. The issue has been brought up within the legislative process previously, but has never garnered enough votes for passage. Taking the issue to the people, however, especially in the current tax and economic climate, may present the right opportunity to secure passage.
The idea is in its infancy, and over 300,000 signatures would need to be gathered by mid summer for the issue to be placed on the ballot. While a ballot question would be an uphill battle, it would likely be welcomed by many in the business community.
Pay equity bills prepped for action
Legislation known as the Pay Equity bills moved to Second Reading status in the House. Proponents of the bills argue that women make 79 cents on the dollar for the same work that men do. Opponents of the package argue the methodology of these studies is flawed.
The main bill in the package would prohibit an employer from failing or refusing to provide compensation equally for work of comparable value in terms of the composite skill, responsibility, effort, education or training, and working conditions because of religion, race, color, national origin, age, sex, height, weight or marital status.
Another bill would provide penalties for noncompliance, ranging from $500 to $2,000, depending on the company’s size.
Crime-victim bills pass House
A package of bills designed to provide an employee who is a victim of a crime with 12 work weeks of unpaid leave during a 12-month period passed the House. The bills would apply to employers having at least 25 employees.
The bills are probably dead on arrival in the Senate, unless significant changes are made.
KEY BILL INTRODUCTIONS:
HB 6010, sponsored by Rep. Michael Sak (R-Grand Rapids), to provide for definition of gross receipts exclude amounts received and remitted to the state under the tobacco products tax act.
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